Infinity Set to Wrap First Fund on $200M –

PALO ALTO, Calif. – Infinity Capital closed its inaugural vehicle, Infinity Capital Fund 1999, at its $200 million cap in late October, and the firm expected to close a $7.5 million affiliates fund shortly thereafter.

Infinity founders Virginia Tureyzn and Sam Lee launched Infinity Capital Fund 1999 late last summer with a $150 million target, and the vehicle notched a first close on $145 million in late September, Turezyn said. The fund will make early-stage investments in 20 to 25 information technology companies.

Lee said the fund was subscribed beyond the cap.

Investors include ITV backers such as FLAG Venture Partners, PacifiCorp, the pension of Hewlett-Packard, Hamilton Lane Advisors Inc. and the Los Angeles County Employees’ Retirement Association, Lee said. New backers include BancBoston Ventures, INVESCO Private Capital, CitiGroup and the University of Richmond.

Tureyzn, Lee and Mark Dubovoy in 1994 founded Internet Technology Ventures (ITV), which raised $213 million in two funds, but the trio split over differences of opinion about how ITV should proceed (VCJ, October, page 5), they said. The three continue to jointly manage ITV portfolio companies. Dubovoy is preparing to launch a new venture effort, but he declined to discuss his plans at press time.

Lee said Infinity described the new arrangement to potential L.P.s and “the results speak for themselves.”

By press time, Infinity had closed two deals, including $10 million of a $31 million B round in Inc., a San-Francisco company that provides party planning ideas and sells party supplies on-line. Other venture backers are Technology Crossover Ventures and Benchmark Capital, Lee said.